A federal judge in New York has rejected an unusual joint effort by the US Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange Gemini to overturn a $5 million settlement reached during the Biden administration.
US District Judge Alvin Hellerstein ruled that neither the regulator nor Gemini Trust Co had provided sufficient grounds to set aside the agreement, which resolved allegations concerning statements made during the CFTC’s review of a proposed bitcoin futures contract.
The settlement, finalised in January 2025, followed a lengthy legal battle that began with a lawsuit filed by the agency in 2022. Gemini, founded by billionaire twins Cameron and Tyler Winklevoss, had agreed to pay the $5 million civil penalty shortly before the case was due to go to trial.
The dispute took an unexpected turn in May, when the CFTC and Gemini jointly asked the court to erase the settlement and the accompanying order. Their filing argued that the original complaint would not have been pursued under the Trump administration’s revised enforcement priorities and standards.
Both sides also criticised the agency’s earlier handling of the case, arguing that the lawsuit should never have been brought and accusing the regulator of using inappropriate tactics to pursue its allegations against Gemini.
However, Hellerstein was unconvinced by the request. He noted that Gemini had contested the allegations for more than three years before voluntarily agreeing to settle. The CFTC’s present position on the dispute, he said, did not provide a sufficient basis to undo the agreement.
Gemini had also agreed that it would not seek reimbursement of the $5 million penalty even if the settlement were vacated.
The decision comes against the backdrop of a broader shift in the federal government’s approach to the cryptocurrency industry. Under President Donald Trump, regulators have adopted a more restrained enforcement posture towards digital-asset businesses, marking a departure from several actions pursued during Joe Biden’s presidency.
That policy change, however, was not enough to persuade the court to reopen Gemini’s case.
The Winklevoss brothers rose to prominence years before entering the cryptocurrency market, following their dispute with Mark Zuckerberg over the origins of Facebook. That conflict ended in 2008 with a settlement involving cash and company shares.
For Gemini and the CFTC, the latest ruling leaves the $5 million agreement intact, despite both parties’ efforts to reverse course.
